Rumour: GungHo Online buys 70% stake in PlayPhone to gain US and emerging markets reach
| Date | Type | Companies Involved | Size |
|---|---|---|---|
| Oct 29, 2014 | acquisition | GungHo Online Entertainment PlayPhone | Not disclosed |
It's not been confirmed by the US company yet, but according to Japanese publisher GungHo Online, it's bought a majority 70 percent stake in PlayPhone.
The news comes as part of GungHo's quarterly financials - currently only available in Japanese.
No details have been given in terms of pricing.
The advantage for GungHo Online is that it has a lot of cash from the success of Puzzle & Dragons, but this is mainly generated from Japan, while Android-focused social gaming network PlayPhone has strong relationships with the main US carriers and is expanding rapidly into emerging markets in Asia and Latin America with the likes of Claro Brazil and SingTel
It runs a white label mobile social gaming network including a curated app store that is typically plugged into the supporting carrier's store, allowing them to generate gaming revenue from carrier billing.
In this way, GungHo will gain massive distribution for its games globally, as well perhaps enabling it to expand into wider publishing operations.
[source: Serkan Toto]
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